N.Z.'S MARKETS.

Auckland Star, Volume LXVII, Issue 233, 1 October 1936, Page 18

N.Z.'S MARKETS.

HOME PURCHASES. GROWING EXPORT TRADE. NEED FOR RECIPROCITY. New Zealand is now exporting 50 per cent more butter to the United Kingdom than is Denmark; the United Kingdom is purchasing twice as much New Zealand cheese as Canadian cheese; New Zealand is supplying 40 per cent of the pork requirements, and is in an outstanding position as the largest exporter of lamb and mutton to the Home market. These facts were quoted by Mr. William Goodfellow this afternoon in support of his contention that New Zealand must have a bilateral trade agreement with the Mother Country, and must purchase correspondingly greater quantities of British goods as her exports expanded. He was proposing a vote of thanks to Sir Richard Linton, former AgentGeneral for the State of Victoria in London, who addressed a Chamber of Commerce luncheon to-day. Sir Richard Linton is making a two-way trade mission to Australia and New Zealand on behalf of a powerful group of English industrialists. Sir Richard Linton urged the great importance of the Ottawa agreement to tlie Dominions ajid the necessity for the continuation of that agreement in preserving the prosperity of these countries. There was a very real sentiment in tlie Old Country attaching to the Dominions, he said, and the British housewife was fully aware that in the Dominions the food that was required by the Mother Country was being produced by their British kith and kin. Yet he was convinced that though we had taken full advantage of the Ottawa agreement the Dominions had not scratched more than the surface of their trade prospects in the Uniteu Kingdom.

New Zealand Leading. "New Zealand t,o-day leads in the import of the butter into the Mother Country, and Danish butter is ranked third on the list," said Sir Richard. He pointed out that in the individual cities of Britain the consumption of New Zealand primary produce had very greatly increased since the signing of the Ottawa agreement. In Glasgow, lie added. 140!) tons of butter had 'been consumed in 19.'10; in 1035, SOOO tons were imported direct. Similarly, in Manchester in the same period "the consumption of New Zealand butter l*ad grown from 2173 tons to 8475 tone. New Zealand chilled beef was becoming increasingly popular and it seemed likelv that this market would grow.

While the low prices that had ruled during the depression days seemed on the surface to have been injurious to the Dominions, he felt, personally, that it had been a definite advantage. Owing to the low prices ruling butter had been purchased in industrial centres by people who previously could not afford it. They had thus,acquired the taste for butter, and would continue to purchase it as far as the limit of their resources. In fact, the consumption of butter in England had risen from 15.71b a head annually to 25.21b. Margarine, on the other hand, had dropped from 11.81b to 71b last Year.

"If we believe in reciprocity as a people," he said, "we must support a two-way traffic between England and the Dominions." He referred to the problem of shipping and the difficulties that were experienced by the companys in getting full cargoes back to New Zealand after, exp.orting New Zealand's produce. There had been considerable talk of subsidies for British shipping to the Dominions. Actually the shipping companies would lie reluctant to accept subsidies as such. All that they wanted was sufficient traffic to make their services payable.